Effectiveness in Mobile Display Advertising

October 22, 2014

mobile-advertisingOne might assume the types of companies that benefit most from mobile display advertising (MDA) are those that sell no-frills, everyday products like cleaning supplies. But new research from Columbia Business School’s Professor Miklos Sarvary has shown that short, promotional messages on mobile devices pack a powerful punch for big ticket items that entail a high level of consideration during the path to purchase—such as cars.

In Which Products Are Best Suited to Mobile Advertising?, Prof. Sarvary, along with INSEAD’s Yakov Bart and the University of Pittsburgh’s Andrew Stephen, analyzed mobile display campaign data from a variety of industries spanning 2007-2010 and reaching nearly 40,000 US consumers. They focused on two primary psychological measures: (1) how favorable consumers’ attitudes are toward advertised products and (2) consumers’ intentions to purchase or use advertised products.

Sarvary, Bart and Stephen identified product characteristics associated with MDA campaigns that boost consumer attitudes and purchase intent and found that mobile ads are most effective in reminding people of a purchase decision for highly-involved products.

“If you’ve been thinking about buying a car, you already have plenty of information in your mind about it…” Sarvary explains. “The ad’s strength is not adding new data, but reminding you what you already know and making you think about the product again.”

By 2016, global spend on mobile advertising is predicted to reach $36 billion. As marketers increasingly dedicate larger portions of their budgets to MDAs, it’s essential to have an in-depth understanding of when and why these ads are most effective.

Download the study to learn more about mobile display advertising and its effects on consumer attitudes and intentions.

BY ALLIE ABODEELY

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